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February 11, 2023

Market & Market Structure

APA, Business, College

39023Question 1: Imagine a firm within a perfectly competitive market. If this company begins to suffer from losses, should it shut down? Please justify your response.

Question 2: Generic drugs are copies of brand-name drugs that have exactly the same dosage, intended use, effects, side-effects, route of administration, risks, safety, and strength as the original drug. In other words, their pharmacological effects are exactly the same as those of their brand-name counterparts. Informed by this week’s concepts, explain why the generic drugs are cheaper than the original brands.

Helpful resources

An Economic Model of Demand and Supply

3.1 The Competitive Market Model

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